Location

When it comes to real estate, everyone tells you that location is everything. That is because it is true. It is critical that you question yourself, "How do I find the right suburb for me?" However, you must also choose the best location for tenants. This depends on the type of tenants you wish to recruit. Families, for example, prefer schools and recreational amenities close by. Young professionals must have easy access to the city. The proximity of your property to such things is critical to the success of your investment. You can't charge as much as other investors if you can't provide what your tenants require. There is also the problem of expansion to consider.
Examine the local economy to determine the state of the region. Strong infrastructure, or projected enhancements, indicate that a location has potential for growth. You're also looking for sustainable local companies and educational facilities. A weak location limits what you may charge tenants. Furthermore, investing in a decreasing market results in losses when you sell.

The Purchase Price

When establishing a buying price, simply asking yourself "how much can I afford to spend on a property?" is insufficient. Keep in mind that you want to make a profit. Simply because you can afford to spend more money does not mean you have to. This is where comparing the purchase price of a property to its intrinsic value might help. The intrinsic value is the true worth of the property. It is determined by several elements, including yield and growth potential. The purchase price is the amount you end up paying for the property.

Everything from the quality of your buyer's agent to the seller's intentions can influence this pricing. This is the general rule. The purchase price must be less than the property's intrinsic value. This is how you earn profits. Only via research will you be able to discover the property's intrinsic value. Conduct due diligence and look for properties that are being sold for less than their true value.

Low Maintenance

What is one of the most common errors people make when purchasing investment property? It entails purchasing without being aware of the response to the following query: What additional expenses are there when purchasing a home? These expenses for investors go much beyond the cost of a mortgage and legal fees. You are also in charge of maintaining the property. You can't draw tenants if you don't keep up with maintenance tasks. Additionally, you'll gain a bad reputation for providing subpar service, which will reduce the property's capacity to produce a yield. A superb investment home therefore has a minimum amount of maintenance requirements.

Beyond the bare necessities, you shouldn't need to spend a lot of money each month to keep it running. When you purchase expensive
residences, high maintenance becomes a bigger problem. You need to keep an eye on all of the devices and equipment they have. This results in more expenses, which reduces your yields. Low upkeep in this context refers to a property that won't break the bank on repairs. Make your life simpler by selecting a home that doesn't frequently have problems.

If you are looking to buy a home in Narre Warren, Berwick, Cranbourne or the surrounding areas, Only Estate Agents are here to help. We are Narre Warren’s trusted real estate agents with many years of experience.

We can help you find the right property at a price that fits your budget. Why not give us a call to discuss your requirements? Call 8786 8889 now for an appointment.